5 An economy experiences a decade in which the quarterly unemployment rate fluctuates between 2.5% and 3.5%. Due to a number of shocks the economy gets into problems and the unemployment rate increases by 0.5%-point per quarter (So it become 4.0% in Q1, 4.5% in Q2, 5% in Q3 and 5.5% in Q4, also in the second year after the shock the unemployment rate continues to increase. This experience is consistent with: a locally and globally stable equilibrium   a locally and globally unstable equilibrium   a locally unstable and globally stable equilibrium   a locally stable and globally unstable equilibrium

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